Restructuring Charges

12 Months Ended

Dec. 31, 2012

For the years ended December 31, 2012, 2011 and 2010 total restructuring charges are as follows:



	Years Ended December 31,
(in thousands)	2012			2011		2010
Severance charges	$	3,826		17,570		3,038
Lease termination charges	—			3,147		—
Asset impairment charges	1,956			6,643		—
Gain on sale of assets held for sale	(622		)	(929	)	—
Professional fees and other charges, net	252			4,234		2,500
Total restructuring charges	$	5,412		30,665		5,538

In January 2011, Synovus announced efficiency and growth initiatives intended to streamline operations, boost productivity, reduce expenses, and increase revenue. During 2011, Synovus implemented most of the components of the initiatives, which resulted in restructuring charges of $30.7 million. During 2012, Synovus recognized restructuring charges of $5.4 million associated with these ongoing efficiency initiatives. As part of these efficiency initiatives, Synovus closed 31 branches during 2011 and 10 branches during 2012. During 2012 and 2011, Synovus transferred premises and equipment with a carrying value of $3.8 million and $17.8 million, respectively, immediately preceding the transfer to other assets held for sale, a component of other assets on the consolidated balance sheet. During 2011, Synovus recognized impairment charges of $6.6 million related to these assets and net gains of $929 thousand on the sale of these assets. During 2012, Synovus recognized impairment charges of $2.0 million related to these assets and net gains of $622 thousand on the sale of these assets. During 2012 and 2011, Synovus received proceeds of $5.8 million and $5.1 million, respectively, from sales of these assets. The carrying value of the remaining held for sale assets was $3.6 million at December 31, 2012.

During the year ended December 31, 2010, Synovus recognized approximately $5.5 million in restructuring charges related to other cost saving strategies.

The liability for restructuring activities was $728 thousand at December 31, 2012 which consists primarily of estimated severance payments and lease termination payments. Cash payments associated with this liability are expected to occur over the next six months.

Severance charges were recognized in accordance with the one-time employee termination benefit provisions of ASC 420-10-25 upon management’s commitment to a plan identifying the number of employees to be terminated, the terms of the benefit arrangement, and upon communication of this information to the employees to be terminated. While recognition of restructuring charges is triggered by communication of the plan and benefit information to affected employees, the timing of recognition depends on whether an employee is required to render further service in order to receive the termination benefits. For employees who are not required to render further service to receive termination benefits or who are not required to render service beyond a minimum retention period of 60 days, a liability is recognized on the date of communication to affected employees. For employees who are required to work beyond the minimum retention period to receive termination benefits, the fair value of termination benefits at the communication date is recognized ratably over the future service period.

In accordance with ASC 360-10-35, restructuring charges were recognized upon a significant adverse change in the extent or manner in which a long-lived asset is being used (removed from service), or upon management's commitment to a plan to sell an asset. Restructuring charges resulting from lease termination expenses were recognized in accordance with ASC 840-20 and ASC 840-30 upon notifying the lessor of Synovus’ intent to terminate a lease.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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